REAL-TIME GLOBAL RESEARCH
Strong 2Q26 Results
Research evidence excerpt
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M
Update
August 20, 2026 01:24 PM GMT
JL Mag Rare-Earth Co. Ltd | Asia Pacific
Morgan Stanley Asia Limited+
Rachel L Zhang
Equity Analyst
Strong 2Q26 Results
Chris Jiang
Equity Analyst
Hannah Yang, CFA
AlphaSignals Earnings Reaction
Equity Analyst
Unchanged
Modest upside
Largely unchanged
Impact to our thesis
Financial results versus consensus
Direction of next 12-month
consensus EPS
Cynthia Tang
Source: Company data, Morgan Stanley Research
Research Associate
Key Takeaways
1H26 net profit grew 52% YoY to Rmb462mn, above the preliminary profit range
of Rmb400-460mn. 2Q26 net profit was Rmb269mn, vs. Rmb193mn in 1Q26.
GPM remained stable at 21.6% in 2Q26, -0.2ppt QoQ/+4.6ppt YoY.
Higher interim dividend: JL Mag plans to pay an interim dividend of Rmb0.25,
JL Mag Rare-Earth Co. Ltd (6680.HK, 6680 HK)
Greater China Materials | China
Rmb223mn in 2Q26 (preliminary range: Rmb192-252mn). Major non-recurring items
Stock Rating
Industry View
Price target
Up/downside to price target (%)
Shr price, close (Aug 20, 2026)
52-Week Range
Mkt cap, curr (mn)
Avg daily trading value (mn)
in 1H26 are government subsidy (~Rmb38mn) and investment income (~Rmb41mn)
Fiscal Year Ending
12/25 12/26e 12/27e 12/28e
from funds.
EPS (Rmb)**
Revenue, net (Rmb mn)
ModelWare net inc
(Rmb mn)
P/E
P/BV
RNOA (%)
Return on avg eqty (%)*
EV/EBITDA
Div yld (%)
0.52
0.79
1.05
1.42
7,718 10,950 12,464 14,228
706
1,085
1,427
1,932
implying ~75% payout ratio (vs. Rmb0.18 and ~81% for 1H25).
JL Mag bought back 2.7mn H share (worth HK$44mn) in July and cancelled.
Recurring NP +70% YoY to RMb399mn in 1H26, and +74% YoY/+27%QoQ to
Revenue +33% YoY to Rmb4.6bn in 1H26, and +49% YoY/28% QoQ to Rmb2.6bn.
Overseas sales in 1H26 grew 39% YoY to Rmb715mn.
NEVs and robots segments continued strong growth in 1H26:
• Revenue from products for NEVs and auto parts was Rmb2.2bn in 1H26,+33%
YoY.
• Revenue from variable-frequency energy-saving air conditioners (VFAC) was
Rmb915mn in 1H26, -9% YoY, amid YoY weaker AC production.
32.0
3.0
11.6
9.7
42.0
1.3
Overweight
Attractive
HK$27.80
67
HK$16.60
HK$29.30-15.74
Rmb33,740
HK$196
17.9
2.3
15.5
13.6
21.8
2.4
…
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